The Law of Wealth That Is Robbing You Blind

Dec 09, 2025 4:11 pm

Hey


Here’s a wealth principle most people have never heard of, but it explains so much of why people feel stuck financially:


It's called 'Gresham’s Law':

“Bad money drives out good money.”


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In simple terms:


When people have two types of money, they spend the money they think is “worse” and hold onto the money they think is “better.”


That sounds smart…

Until you realize most people get this completely backwards in their own lives.


How It Originated - A Simple Story

Imagine you have:

  • A $20 gold coin worth $180 in real metal value
  • A $20 plastic-looking bill worth… $20


Both are technically “money.”

You will spend the cheap bill first and keep the gold coin in your drawer.

Because it’s better money.


Modern Example:

Broke people today:

  • Spend their good money (investments, RRSPs, savings, assets)
  • Hoard their bad money (cash that's losing value, debt payments, lifestyle spending)

This is the opposite of building wealth.

And it’s exactly why so many people feel like they’re running in place—even with a solid income.



Here’s the truth:

Good Money = Assets that grow

(RRSP, TFSA, investments, Bitcoin, real estate equity, compounding accounts)


Bad Money = Anything losing value

(consumer debt, inflation-eaten cash, lifestyle creep)


⭐ The Wealth Switch

The moment you begin:

  • Protecting your good money (assets, savings, investments)
  • Eliminating your bad money (debt, cash, increases in lifestyle)
  • And directing more dollars into assets instead of expenses,

…your entire financial trajectory changes.


This is the foundation of Becoming Financially Indestructible: Organizing your cash flow.

Protect your good money. Release your bad money.


Flip that, and your wealth trajectory changes instantly.


The wealthy people of the world know how to use their cash flow properly and they use Gresham's Law all the time. They don't spend their good money ever. They use the bad money to buy assets that make them good money.


A quick question for you:

Where in your life are you spending your good money and hoarding your bad money?


That answer might be the breakthrough.


I'm going to host a webinar in the new year on this topic and how we can use it to get us ahead financially. And I think you'll really like it... Stay tuned.


To Your Financially Indestructibility,


Michael

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